# Volume Profile and a Breakout Example

**Speaker 1:** [00:00](https://www.youtube.com/watch?v=f5KjgeVjR-o&t=0s) Every trader should know this indicator. It's called the volume profile. It shows where the most volume traded.

First, find a range: prices stuck between a high and a low. Now, draw the volume profile from the range high to the range low. Each bar will show you how much volume traded at that price. The longest bar is the point of control, the price with the most volume. Think of it as the market's fair price.

Now, wait for a breakout. Price breaks above the range, and very often it comes back to retest the point of control. That's your entry. Go long at the point of control. Stop loss just below it. Take your profit at three times your risk.

![Volume profile chart showing the POC line, LONG entry, Stop, Target, and a 1:3 label (00:36).](figures/frame_0036000.png)

And there it is: take profit. Save this for your next trade.